New Reefton gold mine promises to provide 'many opportunities' for locals

Friday, 7 August 2020

Reefton is an up-and-coming town making steps to move on from mining booms of the past, to embrace adventure tourism, a gin distillery among other things. (Video first published February 2020)

A new goldmine on the West Coast will begin construction in September with the promise of 140 jobs over 10 years.

Federation Mining Pty Ltd announced on Friday it had secured funding to progress the Blackwater Gold Project near Reefton. The mine is at the abandoned township of Waiuta and was mined successfully from 1908 to 1951.

The funding includes a $15 million loan from the Government’s Provincial Growth Fund, which was subject to final documentation and Federation securing co-funding.

Federation managing director Mark Le Messurier said the funding had been secured from AustralianSuper, the largest superannuation fund in Australia. The investment was approved by New Zealand’s Overseas Investment Office in late July.

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Reefton’s economy is likely to get a boost now funding has been secured for a new mine near the West Coast town.

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* $250,000 spent on study to find out West Coast railway is 'uneconomic'

* West Coast garnet mine granted $10m Government loan scrapped

* Community hopes to save historic West Coast school

“The landmark investments will allow site works to commence at Blackwater next month,” he said.

Construction includes a twin 3.3-kilometre tunnel and underground drilling.

The mine is expected to produce an estimated 700,000 ounces of gold.

About 40 people would be employed over three years for the construction phase, and the mine would employ 100 people once production began in 2024, Le Messurier said

The mine was granted consents in 2014, and a mining permit was approved in 2018.

“The Blackwater Gold Project is fully permitted and will see many opportunities for local people and businesses to participate at what is an important time for the local economy,” Le Messurier said.

Federation plans to recruit its own workforce to develop the mine and will need truck drivers, equipment operators, mining professionals, safety and environmental professionals, maintenance staff, and specialist contractors.

Reefton businessman and Buller district councillor John Bougen said it was “sensational” news.

”It’s interesting that Buller, out of all the districts, is doing the best because it relied the least on international tourism.

“We are doing better than last year and [the Blackwater goldmine] is not just icing on the cake it's the whole top half of the cake,” he said.